BRIDGEWATER, N.J.--(BUSINESS WIRE)--Feb. 3, 2016--
Synchronoss
Technologies, Inc. (NASDAQ: SNCR), the leader in mobile cloud
innovation and software-based activation for mobile carriers,
enterprises, retailers and OEMs around the world, today announced
financial results for the fourth quarter and full year 2015.

“The fourth quarter marked a strong end to an exciting year at
Synchronoss,” said Stephen G. Waldis, Founder and Chief Executive
Officer of Synchronoss. “Our Cloud Services business continues to
perform well, driven by increasing subscriber adoption across our
expanding customer base. We are also seeing strong, early interest in
our Enterprise Business Unit, including the addition of identity
management service offering to the Synchronoss Secure Mobility Suite.
Overall, 2015 was a pivotal year for Synchronoss as we executed well
against our go-to-market strategy while also expanding our market
footprint by introducing several new initiatives. As a result, we
believe there is a long runway of opportunity ahead that will lead us
through the next phase of growth.”

On a GAAP basis, Synchronoss reported fourth quarter net revenues of
$157.2 million, representing an increase of 21% compared to the fourth
quarter of 2014. Gross profit was $90.2 million and income from
operations was $15.4 million in the fourth quarter of 2015. Net income
attributable to Synchronoss was $5.3 million, leading to diluted
earnings per share of $0.12, compared to $0.30 for the fourth quarter of
2014.

On a non-GAAP basis, Synchronoss reported fourth quarter net revenues,
which adds back the purchase accounting adjustment related to revenues
for certain acquisitions, of $157.8 million, an increase of 21% compared
to the fourth quarter of 2014. Gross profit for the fourth quarter of
2015 was $98.3 million, representing a gross margin of 62%. Income from
operations was $44.3 million in the fourth quarter of 2015, representing
a year-over-year increase of 22% and an operating margin of 28%. Net
income attributable to Synchronoss was $28.7 million in the fourth
quarter of 2015, up from $24.2 million in the year ago period. Diluted
earnings per share were $0.61 for the fourth quarter of 2015, compared
to $0.53 for the fourth quarter of 2014.

A reconciliation of GAAP to non-GAAP results has been provided in the
financial statement tables included in this press release. An
explanation of these measures is also included below under the heading
"Non-GAAP Financial Measures."

“We are pleased with our financial and operational performance in the
fourth quarter and the full year, particularly our ability to generate
strong free cash flow,” said Karen L. Rosenberger, Chief Financial
Officer and Treasurer. “We believe the investments we have made in our
business over the last year position us well to generate significant
value for our shareholders.”

Fourth Quarter and Recent Business Highlights:

Cloud Services revenue accounted for $90.9 million of non-GAAP
revenue, representing approximately 58% of total non-GAAP revenue and
growing 43% on a year-over-year basis.

Extended our agreement with AT&T through 2018.

Entered into a joint venture with Verizon (NYSE: VZ) to establish a
next generation platform for multifactor authentication and identity
management adding another core component to Synchronoss’ Secure
Mobility Platform.

Formed the Board of Advisors for the Enterprise Business Unit (EBU),
comprised of current and former representatives
from Synchronoss, Goldman Sachs, Verizon, Vodafone and Morgan Stanley.
This Board of Advisors will provide insight into the growing
enterprise market demand for digital solutions and assist in the
development of innovative business opportunities for the EBU.

Full Year 2015 Financial Results

On a GAAP basis: revenues for the full year 2015 were $578.8 million,
an increase of 27% compared to $457.3 million in the prior year. Gross
profit was $339.8 million, income from operations was $79.6 million
and net income attributable to Synchronoss was $40.6 million, leading
to full year 2015 diluted earnings per share of $0.89.

On a Non-GAAP basis: revenues for the full year 2015 were $580.1
million, an increase of 26% compared to $458.6 million in 2014. Gross
profit was $356.8 million, representing a gross margin of 62%, and
income from operations was $162.6 million, representing an operating
margin of 28%. Net income attributable to Synchronoss was $104.1
million for the full year 2015, leading to diluted earnings per share
of $2.23, an increase of 25% from $1.79 in the prior year.

Conference Call Details

In conjunction with this announcement, Synchronoss will host a
conference call today, February 3, 2016, at 8:30 a.m. (ET) to discuss
the company's financial results. To access this call, dial 877-930-7767
(domestic) or 253-336-7416 (international). The pass code for the call
is 24932884. Additionally, a live web cast of the conference call will
be available on the “Investor Relations” page on the company’s web site www.synchronoss.com.

Following the conference call, a replay will be available for a limited
time at 855-859-2056 (domestic) or 404-537-3406 (international). The
replay pass code is 24932884. An archived web cast of this conference
call will also be available on the “Investor Relations” page of the
company’s web site, www.synchronoss.com.

Non-GAAP Financial Measures

Synchronoss has provided in this release selected financial information
that has not been prepared in accordance with GAAP. This information
includes historical non-GAAP revenues, gross profit, operating income,
net income, effective tax rate, earnings per share and cash flows from
operating activities. Synchronoss uses these non-GAAP financial measures
internally in analyzing its financial results and believes they are
useful to investors, as a supplement to GAAP measures, in evaluating
Synchronoss’ ongoing operational performance. Synchronoss believes that
the use of these non-GAAP financial measures provides an additional tool
for investors to use in evaluating ongoing operating results and trends,
and in comparing its financial results with other companies in
Synchronoss’ industry, many of which present similar non-GAAP financial
measures to investors. As noted, the non-GAAP financial results
discussed above add back the deferred revenue write-down associated with
acquisitions, fair value stock-based compensation expense,
acquisition-related costs which includes integration costs, changes in
the contingent consideration obligation, deferred compensation expense
related to earn outs and amortization of intangibles associated with
acquisitions.

Non-GAAP financial measures should not be considered in isolation from,
or as a substitute for, financial information prepared in accordance
with GAAP. Investors are encouraged to review the reconciliation of
these non-GAAP measures to their most directly comparable GAAP financial
measures as detailed above. As previously mentioned, a reconciliation of
GAAP to non-GAAP results has been provided in the financial statement
tables included in this press release.

About Synchronoss Technologies, Inc.

Synchronoss (NASDAQ: SNCR) is the mobile innovation leader that provides
personal cloud solutions and software-based activation for connected
devices across the globe. The company’s proven and scalable technology
solutions allow customers to connect, synchronize and activate connected
devices and services that empower enterprises and consumers to live in a
connected world. For more information visit us at www.synchronoss.com.

Forward-looking Statements

This document may include certain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include, but are not limited to, plans,
objectives, expectations and intentions and other statements contained
in this press release that are not historical facts and statements
identified by words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates," “outlook” or words of similar
meanings. These statements are based on our current beliefs or
expectations and are inherently subject to various risks and
uncertainties, including those set forth under the caption "Risk
Factors" in Synchronoss’ Annual Report on Form 10-K for the year ended
December 31, 2015 and other documents filed with the U.S. Securities and
Exchange Commission. Actual results may differ materially from these
expectations due to changes in global political, economic, business,
competitive, market and regulatory factors. Synchronoss does not
undertake any obligation to update any forward-looking statements
contained in this document as a result of new information, future events
or otherwise.

The Synchronoss logo, Synchronoss and Synchronoss Integrated Life are
trademarks of Synchronoss Technologies, Inc. All other trademarks are
property of their respective owners.

SYNCHRONOSS TECHNOLOGIES, INC.

BALANCE SHEETS

(in thousands, except per share data)

(Unaudited)

December 31, 2015

December 31, 2014

ASSETS

Current assets:

Cash and cash equivalents

$

147,634

$

235,967

Marketable securities

66,357

51,097

Accounts receivable, net of allowance for doubtful accounts of
$3,029 and $88 at December 31, 2015 and 2014, respectively